Being pegged to the euro-at CFAfr655.96:EUR1-the CFA franc fluctuates in line with euro:dollar movements. Even if the US recovery were to stall, the dollar will continue to strengthen in 2011 and 2012 in the expectation of continued low ECB interest rates owing to ongoing euro zone fiscal and sovereign debt concerns more than outweighing the impact of the new round of quantitative easing by the US Federal Reserve (the US's central bank). The CFA franc will continue to weaken, although we have moderated our forecasts slightly. The franc will slide from an average of CFAfr496:US$1 in 2010 to CFAfr547:US$1 by 2012. The French Treasury will continue to guarantee the CFA franc's peg to the euro.